By Alexandre Deslongchamps
Nov. 21 (Bloomberg) -- Canada's annual inflation slowed more than expected in October and prices had the biggest monthly drop since 1959, bolstering the central bank's view that they may tumble through next year.
Consumer prices rose 2.6 percent from a year earlier, after 3.4 percent in September, as gasoline posted a smaller gain than in previous months, Statistics Canada said today in Ottawa. Prices declined 1 percent on a monthly basis. Economists surveyed by Bloomberg predicted 3.1 percent annual inflation and a 0.6 percent drop from the month before.
The Bank of Canada, which lowered interest rates by three- quarters of apercentage point last month, said at the time that a lack of available credit and a global downturn would depress consumer prices. Canadian inflation will slow to 1 percent between June and December of 2009, half the central bank's target, according to a forecast released Oct. 23.
``This tells the bank, which is focusing on slower economic growth, that it doesn't need to worry about inflation,'' said Benoit Durocher, an economist with Mouvement Desjardins in Montreal.
Durocher predicts inflation will continue to slow and the bank will cut rates by about 100 basis points before May. A basis point equals 0.01 percentage point.
To see the entire article, see below...
http://www.bloomberg.com/apps/news?pid=20601082&sid=a0MsYtOu7maI&refer=canada
So variable is where you want to be..
Now please keep in mind this 1.00% predicted drop is only the opinion of one economist, however I think the message is clear at this point that there is still a significant downward pressure on the Bank of Canada to lower rates.
I still have access to PRIME RATE LENDING, at 4.00%, (Only one lender in Canada) so please do not wait, this lender is now up to 2-3 weeks for response time. It is very likely they may have to discontinue the rate to allow their underwriters to process the volume of business that is going through this lender.
Thanks,
David Kendall
Senior Mortgage Consultant
211 York Road, Unit 3, Dundas, Ont. L9H 1M9
Search This Blog
Subscribe to:
Post Comments (Atom)
Mortgage Alliance Oac Mortgages
As a registered franchise of the Mortgage Alliance Network, we have a number of mortgage professionals who can bring you the choice, convenience, and counsel you need to get the RightMortgage®. Working with over 40 lenders (some offered exclusively through brokers) we'll provide unbiased guidance in your mortgage decision.
We are legislated by the Ministry of Finance FSCO and our brokerage license is 10928.
We are dedicated to educating our clients about their mortgage! We want you to be well informed and comfortable with the mortgage you have and the options available to you. This blog is intended to offer information, updates, current mortgage products and current rates.
Please provide your feedback and let us know if there is anything else we can provide to help you in your mortgage process.
We are legislated by the Ministry of Finance FSCO and our brokerage license is 10928.
We are dedicated to educating our clients about their mortgage! We want you to be well informed and comfortable with the mortgage you have and the options available to you. This blog is intended to offer information, updates, current mortgage products and current rates.
Please provide your feedback and let us know if there is anything else we can provide to help you in your mortgage process.
No comments:
Post a Comment